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Technology Stocks : Metatools (MTLS) - looking for discussion

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To: Patrice Gigahurtz who wrote (161)4/22/1997 11:26:00 AM
From: Damon Pham   of 281
 
Startup companies always have insiders selling because employees are trying to cash in on profits from stock options which they got at a fraction of the cost before the company went public. Consequently, seeing insider activity is not that unusual.

However, when you see selling on a massive scale or by certain key individuals, it can sometimes be a sign of people acting on insider information that the average investor does not have. I would say the sales in this case had less to do with good timing and more with inside knowledge of problems that company was going to have in meeting revenue and earnings estimates (or exceeding them as a company this size should be doing).

The technical charts for this stock look dismal. It has been shattering support levels one after another. Until it forms a base, I see more weakness unless major news hits to prop up the stock price.
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